Irvine Ranch Water District Distributed Energy Storage Case

Irvine Ranch Water District Distributed Energy Storage Case Study Urban Water Institute Annual Conference San Diego, CA August 17, 2017

Discussion Topics • IRWD Basics • Energy Management at IRWD • Battery Storage Program Implementation 2

IRWD Basics An Introduction to the District.

IRWD Services Drinking Water 5 water treatment plants 27 Wells and 36 reservoirs 1, 760 miles of water pipeline Sewage Collection 1, 070 miles of collection pipeline Recycled Water 2 recycled water plants 525 miles of recycled water pipeline Urban Runoff Treatment IRWD San Joaquin Marsh 27 wetland treatment sites 4

Energy Management at IRWD

Background • Electric industry is changing: – 33% renewable energy by 2020 – 50% renewable energy by 2030 • Potential electricity issues in Southern California: – San Onofre Nuclear generating station – Retiring natural gas power plants – Once-through cooling policies for natural gas plants * Curve is Net Demand: Total Demand – Renewables 6

Grid Solution – Energy Storage at IRWD Southern California Edison (SCE) procuring 2, 500 megawatts of new local resources including: • • Johanna Substation Natural Gas Fired Generation Energy Efficiency Programs Demand Response Energy storage – Behind-the-meter – In-Front-of-Meter Santiago Substation IRWD qualifies to host energy storage sites: • Location • Energy consumption • Load profile 7

Energy Management at IRWD Steps taken: 1) Developed an Energy and Greenhouse Gas Master Plan 2) Demand response and optimization: ‒ ‒ Minimizing peak time of pumping Flow equalization High energy efficiency equipment Embedded energy surcharges 15% of IRWD’s Operating Budget is for energy expenses. 3) Developed onsite generation: ‒ Diesel and natural gas engines ‒ Solar energy Projects underway: Alternative energy projects: ‒ Bioenergy ‒ Energy storage. 8

IRWD’s Embedded Energy Plan Embedded energy calculated for each segment of IRWD’s supply, distribution and treatment systems. 9

IRWD Electric Demands – Peak Winter Day 10

IRWD Electric Demands – Peak Summer Day Reductions in Response to Time of Use Charges 11

Battery Storage Program Implementation

Why Battery Energy Storage at IRWD? • IRWD Strategic Goal: Energy Efficient and Reliable • Retirement of San Onofre Nuclear Generation Station • IRWD Location and Load within Constrained Grid • Availability of Grant Funding: Self Generation Incentive Program (SGIP) • Advances in Technology: Batteries, Software, etc. • Public – Private Partnership Opportunity 13

Implementation Steps Apr 2015 1. Facility portfolio analysis to determine viability of each potential site (IRWD & AMS) 2. Develop concept and obtain buy-in from IRWD departments (IRWD & AMS) 3. Secure acceptance from IRWD Board of Directors (IRWD) 4. Retain consultant to review energy profiles and business terms (IRWD) 5. Select sites for application and secure SGIP funding (AMS) Aug 2016 6. Negotiate final terms for agreements (IRWD & AMS) 20 months 7. Complete design, procurement, and construction (AMS w/IRWD) 14

AMS - IRWD Partnership Model IRWD partnered with Advanced Microgrid Solutions (AMS). • Battery Storage: 11 IRWD sites, 7 MW total storage. Host Customer IRWD • IRWD Benefits: Savings of approx. $500, 000 per year and operational efficiencies. • 6 Demand Response Sites: Grid reliability to SCE and demand management to IRWD. • 5 Non-Demand Response Sites: Demand management to IRWD. • Shifting Risk: Financial, Technology, Regulatory, etc. Service Fee Energy Savings Own & Operate Battery Storage Developer AMS Load Reduction Utility Contract Utility SCE 15

Peak Shaving using Battery Storage NEW LOAD PROFILE Customer bill consists of two key components (1) total energy used and (2) highest amount of energy used (peak). Battery system lowers costs for both ANNUAL LOAD BEFORE AFTER PEAK 1, 146 k. W 843 k. W ENERGY 3, 864 MWh 3964 MWh PEAK DATE 9/3/2013 METER-LEVEL LOAD DATA Historical 15 -min interval, meterlevel load data used to size battery systems and design software operation. BATTERY STATE (%) CUSTOM DESIGNED BATTERY OPERATIONS Custom-designed for each facility and optimized based on host customer rates / utility restrictions (e. g. when battery can be charged or export to grid BATTERY/LOAD (k. W) 1200 900 600 300 0 100% 0% NATIVE LOAD (k. W) POST-BATTERY LOAD(%) REAL-TIME OPTIMIZATION SOFTWARE Learns and forecasts when battery dispatches to shave peak to reduce costs BATTERY IN, OUT BATTERY STATE(%) SCHEDULED BATTERY DISPATCH Battery dispatch instructions scheduled by utility for load shifting during peak. 16

Deep Aquifer Treatment System (DATS) Web Portal View 17

Paul A. Cook, P. E. IRWD General Manager cook@irwd. com www. irwd. com (949) 453 -5300 15600 Sand Canyon Avenue, Irvine, CA 92618 18